SR 07-11-2017 3I
Ci ty Council
Report
City Council Meeting : July 11, 2017
Agenda Item: 3.I
1 of 5
To: Mayor and City Council
From: Susan Cline, Director , Public Works, Water Resources
Subject: Award Purchase Order and Contract for Purchase and Replacement of
Arcadia Water Plant Reverse Osmosis Membranes
Recommended Action
Staff recommends that the C ity Council:
1. Award Bid #4274 to Cora Constructors, I nc., a California -based company , for the
purchase of 1,620 r everse o smosis m embrane e lements and a ssociated parts for
the Arcadia Water Plant ; and Process Engineering Services, Inc., a California -
based c ompany, for replacement and installation of new reverse osmosis
membranes at the Arcadia Water Plant and haul -away/disposal of existing
membranes.
2. Authorize the Purchasing Services Manager to issue a purchase order with Cora
Construct ors , I nc., for the pro vision of 1,620 r everse o smosis m embrane
e lements and associated parts in an amount not to exceed $779,022 (including a
10% contingency ).
3. Authorize the City Manager to negotiate and execute an agreement with Process
Engineering Services, I nc. for replaceme nt and installation of new reverse
osmosis membranes at the Arcadia Water Plant and haul -away/disposal of
existing membranes , in an amount not to exceed $76,494.
Executive Summary
The Arcadia Water Treatment Plant , located in West Los Angeles, produces
ap proximately 8 ,6 00 acre -feet of water per year treating locally produced groundwater
via a multi -stage process. A total of 1,608 reverse osmosis (RO) membrane elements
are used to remove minerals, salts, metals and organic matter from groundwater in
order to comply with Federal and State regulations . The plant’s existing RO membranes
were installed in 2011 and have reached the end of their estimated five -year useful
lifespan.
Eight bids for furnishing and/or installing replacement RO membranes were receive d
subsequent to a City request for bids issued in April 2017. S taff recommends splitting
2 of 5
the bid award t o the lowest -cost providers for membrane elements and parts; and
replacement and haul -away/disposal services for existing membranes. Cora
Constructors, Inc. would provide 1,620 membrane elements, including 12 spares, and
associated parts in an amount not to exceed $779,022 including a 10% contingency.
P rocess Engineering Services, I nc. would provide RO membrane installation, haul -
away , and disposal servi ces in an amount not to exceed $76,494 , including up to
$38,247 in additional as -needed cleaning services to be performed at the discretion of
the City . Membrane housing c leaning services may be required due to build -up of scale
over the past six years , w hich cannot be accurately assessed until the housings are
opened .
Background
The Arcadia Water Treatment Plant , located at 1228 S. Bundy Drive in West Los
Angeles, treats local groundwater via a multi -stage process , supplying approximately
75% of the City 's 10 -million gallon per day potable water demand to over 18,000 water
accounts , with the remainder imported from the Metropolitan Water District of Southern
California . In addition to filtration, aeration , and the application of chemicals for
disinfection and other purposes, reverse osmosis membranes are used to remove
minerals, salts, metals and organic matter in order to provide a safe, reliable and
sustainable supply of drinking water compliant with Federal and State regulations.
In 2011, the Arcadia W ater Plant was renovated to provide additional treatment capacity
in concert with Charnock Well Field infrastructure upgrades allowing for the capability to
treat methyl tert -butyl ether (MTBE) and other volatile organic compounds in
groundwater via granul ar activated carbon. As part of the renovations, 1,608 new Toray
TMG20D -440 40” x 8” reverse osmosis membrane elements mounted on four skids
were installed at the Arcadia Water Plant . Running three skids at once , with one skid on
standby at any one time, t he City quadrupled total production from 1,950 acre -feet per
year (prior to re -activation of Charnock wells) to over 8,000 acre -feet annually beginning
in 2012 ; and 8,614 acre -feet in FY 2015 -16 . Aside from a few replacements over the
past six years, the m ajority of membranes have been in place since 2011 and have
reached the end of their estimated five -year useful lifespan. Plant staff have observed
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an increase in water hardness due to salt passage, confirming the need to replace the
membranes . Salt passag e does not impact the safety of the drinking water; however, if
left unaddressed, it is anticipated customer complaints would increase due to scale
buildup (spotting) and other water hardness issues .
Discussion
In April 2017, the City issued a two -part b id f or qualifying v endors/contractors to furnish
1,620 reverse osmosis membranes including 12 spares and associated parts (Part I);
and to provide membrane installation and housing element cleaning services along with
haul -away and disposal of old membrane s (Part II). B idders were provided the
opportunity to bid on one or both parts.
Vendor/Contractor Selection
On April 20, 2017, the City published Notices Inviting Bids to provide 1,620 reverse
osmosis membranes and associated parts , installation service s, and haul -away and
disposal of old membranes in accordance with City specifications. The bid was posted
on the City's on -line bidding site, and notices were advertised in the Santa Monica Daily
Press in accordance with City Charter and Municipal Code pro visions. Forty -six vendors
downloaded the bid. Eight bids were received and publicly opened on May 11, 2017 ,
per Attachment A.
Bids were evaluated based on the criteria in SMMC 2.24.072, including price, previous
experience, ability to deliver, quality of product, and compliance with City specifications.
For Part I, provision of 1,620 membranes and associated parts, Cora Constructors, Inc.
provided the lowest overall bid. Cora Constructors would supply Toray TMG20D -440
membranes, the same make/model as t hose currently installed at the Arcadia Water
Plant.
For Part II, installation of new membranes and haul -away and disposal of old
membranes, Process Engineering Services provided the lowest overall bid at $38,247,
but included a memo of uncertain field conditions related to cleaning the membrane
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housings which may incur additional cost at the discretion of the City . Due to the six -
year timeframe since the last membrane replacement, the amount of scale and build -up
cannot be determined without actually op ening each housing. Each housing
accommodates six 40” x 8” membrane elements and must be cleaned after removal of
existing membrane elements and prior to installat ion of the new elements. It is
anticipated that the maximum unforeseen cost for up to 80 hour s of additional labor per
skid for acid and/or high pressure washing, flushing, and housing rehabilitation for
excess scale multiplied by four skids would be $38,247 (double the initial labor cost ,
with the actual additional cost to be calculated on a time and materials basis ). The next
lowest bidder, Evoqua Water Technologies bid $66,995.56, but would also use Process
Engineering Services as their subcontractor , potentially subjecting the City to the same
additional costs. Evoqua Water Technologies is offe ring a shorter three -month warranty
on installation compared with a one -year warranty offered by Process Engineering
Services. Four other bidders offered pricing between $123,651 and $192,000. Despite
the memo of uncertain field conditions requiring up to $38,247 in additional as -needed
cleaning services to be added onto the base bid, staff recommends proceeding with
Process Engineering Services for Part II of this bid.
Staff contacted references provided by Cora Constructors, I nc. and Process
Enginee ring Services, I nc . Reference agencies reported that work and materials were
provided in a timely and cost -efficient manner where quality was maintained throughout.
Staff also verified that the contractor’s license for Process Engineering Services, I nc.
(General Engineering A, C10 Electrical and C55 Water Conditioning) is active and in
good standing. Based on these criteria, Cora Constructors, I nc. is recommended as the
best bidder to provide 1,620 membrane elements and associated parts; and Process
Engine ering Services, I nc., is recommended as the best bidder to provide membrane
installation services and haul -away and disposal of old membranes .
Timeline
The City anticipates that membrane replacement would take place in fall 2017 with one
skid to be repla ced per week while keeping the Arcadia Water Plant fully operational.
Should additional membrane housing cleaning services be necessary, replacement of
5 of 5
each skid may take up to two weeks each. Three skids will continue to run during
replacement operation s to maintain potable water production.
Financial Impacts and Budget Actions
The purchase order to be awarded to Cora Constructors, I nc. is for an amount not to
exceed $779,022 . Funds in the amount of $779,022 are available in the FY 2017 -18
Capital Imp rovement Program budget in account C259209.589000 .
The contract to be awarded to Process Engineering Services, I nc. is for an amount not
to exceed $76,494 . Funds in the amount of $76,494 are available in the FY 2017 -18
Capital Improvement Program budget in account C259209.589000 .
Prepared By: Geohvanny Herrera, Water Production and Treatment
Administrator
Approved
Forwarded to Council
Attachments:
A. Bid Results - F4274 - Arcadia Water Plant Reverse Osmosis Membrane
Replacement Project
B. Oaks Initiat ive Disclosure Form - Cora Constructors
C. Oaks Initiative Disclosure Form - Process Engineering Services
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N/ACLEANING & DISINFECTING SOLUTIONS FOR HUSING ALCON MATERIAL PREFERRED. TESTING CHEMICALS DISPOSABLE CHIMNEYBRUSHES AND CLEANING WIPES. ASSUME RE-USE OF ELASTOMERS.
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REFERENCE:
Agreement No. 10494
(CCS)